| The Tax Publishers2021 TaxPub(DT) 1424 (All-Trib) INCOME TAX ACT, 1961
Section 143(3) Section 56
Where power project could not be commenced and set up the treatment given by the assessee being interest on bank deposit set-off against interest debited by bank on term loan would be decided by CIT(A) on the line with Tribunal's order for assessment years 2013-14 and 2014-15, hence, issue was, therefore, remitted back to CIT(A) for afresh decision.
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Assessment - Addition to income - Interest earned on bank deposits - As power project yet not set up whether interest earned would reduce interest cost on term loan
With respect to interest earned by assessee on bank deposits was to the tune of Rs. 6,80,71,611. The issue was with respect to interest income of Rs. 1,49,85,443 earned from IVRCL & MG Contractors for advance paid for execution of certain work(enhancement of income by CIT(A)]. The assessee had deducted aforesaid receipts from the expenditure during construction period, and had filed return of income showing 'Nil' income. The CIT(A) had decided the issue against the assessee. Including enhancement of income with respect to interest income from advances to contractors. The Tribunal had recently passed an appellate Order, dated 29-1-2021 in ITA No. 175/Alld/2018 for assessment year 2013-14 in an appeal filed by assessee, and appellate order in ITA No. 80 & 177/Alld/2018 for assessment years 2013-14 and 2014-15. Held: The Tribunal had while adjudicating Revenue's appeal for assessment years 2013-14 and 2014-15 set aside and restored the matter to the file of CIT(A) for fresh determination of the issue with certain directions. Thus, Following aforesaid decision of Tribunal, Tribunal was setting aside the appellate order passed by CIT(A) on this issue and remitting the matter back to the file of CIT(A) to decide this issue afresh on merits, with the same directions as were given by the Tribunal while adjudicating appeal for assessment years 2013-14 and 2014-15. The CIT(A) will also look into specific additional contention of CIT DR that the bank was creating bank deposits because it was assessee who has itself given standing instructions to the bank, shall also be looked into by CIT(A) while adjudicating appeal de novo. Needless to say that CIT(A) shall give proper and adequate opportunity of being heard to the assessee in de novo appellate proceedings.
Followed:Order(s), dated 29-1-2021 ITA No. 175/Alld/2018 for assessment year 2013-14 in an appeal filed by assessee, and appellate order in ITA No. 80 & 177/Alld/2018 for assessment years 2013-14 & 2014-15.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2015-16 & 2016-17
INCOME TAX ACT, 1961
Section 143(3) Section 56
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